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Bitcoin vs. Gold – Nayib Bukele vs. Peter Schiff



The ongoing discussion about the pros and cons of investing in Bitcoin and gold continued over the weekend. El Salvador's President Nayib Bukele, who is very convinced of Bitcoin , quarreled with gold fan Peter Schiff.


The debate followed the news that El Salvador re- invested in Bitcoin on December 4th, adding another 150 BTC to the country's current holdings. At the time, that investment was worth approximately $ 7.3 million. Bitcoin critic Peter Schiff responded to the tweet by saying:


“There are many more break-ins to come. How much tax money do you want to waste? "


Bukele replied the next day with the statement “none”. In just 24 hours, he said, profits were made from the last purchase. The Bitcoin price fell on December 4 on a 9-week low of 46,633 US dollars before recovering slightly. According to CoinGecko, the BTC price stands at $ 48,592 at the time of this report.


Bitcoin price rises, gold loses value

Nayib Bukele told Schiff and his Twitter followers that El Salvador has gold reserves worth nearly $ 80 million. He added that the price of gold is falling over the year while the same amount of Bitcoin has increased nearly 160% over the same period. Bukele describes Schiff as a boomer and leads the high price increase of Bitcoin :


“You know, boomers, we have 44,106 ounces of gold in our reserves, valued at $ 79 million. That is 0.37% less than a year ago. If we had sold the gold a year ago and invested in Bitcoin , the investment would now be worth $ 204 million. "


However, Schiff continues to believe that Bukele is making a “huge bet” with other people's money.


“Plus, with last week's bitcoin investment, you're still in the red. You're making a huge bet on other people's money. That will probably not work out well for them or for the citizens! "


Comparison of profit increases

The BTC price is volatile, it is well known, but this year the Bitcoin price has surpassed the gold price in terms of profits. Even after a 29% correction from last month's all-time high , the Bitcoin price has still gained 66.5% since the beginning of 2021 .


Gold, on the other hand, actually declined in the same 11-month period, falling 5.7% from $ 1,893 an ounce to currently around $ 1,784. The price of gold saw solid growth throughout 2019 and the first half of 2020, but turned back into the red on August 6, 2020 after hitting an all-time high of $ 2,070. Smart investors are likely to have a little of both in their portfolios, however, as both assets provide a hedge against inflationary fiat currencies.

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